Speaker 1: From the Bloomberg Interactive Brokers Studios. This is Bloomberg day
Speaker 1: Break for Tuesday, May thirtieth.
Speaker 2: Coming up today, President Biden and Speaker McCarthy worked the
Speaker 2: phones in support of their debt ceialing deal.
Speaker 1: Elon Musk Lands in Beijing for his first visit to
Speaker 1: China in three years.
Speaker 2: Jamie Diamond is also headed to Asia for JP Morgan
Speaker 2: Chase's China summit.
Speaker 1: And Wall Street gears up for this week's JOMPS report.
Speaker 3: Memorial Day parades took place across the nation, including in
Speaker 3: New York City, plus another wave of attacks as Russia
Speaker 3: pummeled Ukraine's capital. I'm Michael Barher Moore Ahead, I'm.
Speaker 4: Don Sta Sharon Sports. The Yankees began their roachip with
Speaker 4: the winn in Seattle. NBA Playoffs, Miami won Game seven
Speaker 4: in Boston.
Speaker 5: That's all straight ahead on Bloomberg day Break, The Business
Speaker 5: news you need to sturn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business app, and everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan.
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Karen adeel is in place to avert a potential US
Speaker 2: default as soon as next week. Now, the real work
Speaker 2: begins for President Biden and House Speaker Kevin McCarthy getting
Speaker 2: their members to vote for it. The President says he's
Speaker 2: been on the phone personally with lawmakers to try to
Speaker 2: win their support.
Speaker 6: We know I never stay. I'm confident with the conrect
Speaker 6: from here.
Speaker 3: I feel very good about it.
Speaker 6: I've spoken and numbered a member, I've spoke to McConnell,
Speaker 6: and it feels good.
Speaker 7: We'll see when the boat start.
Speaker 5: Now.
Speaker 2: The first test for President Biden and that deal comes
Speaker 2: this afternoon when the House Rules Committee takes up the bill.
Speaker 2: If it passes there, the agreement could head for a
Speaker 2: vote on the House floor by tomorrow.
Speaker 1: Well Nathan in political news outside the country, new signs
Speaker 1: of tension between the US and China, with another request
Speaker 1: to meet with Defense Secretary in Lloyd Austin rebuffed by Beijing,
Speaker 1: and Bloomberg's Ed Baxter has the story.
Speaker 8: The US had been waiting for an answer and it
Speaker 8: comes back no, says very concerning. China had demanded the
Speaker 8: sanctions that are in effect on Austin's counterpart, Lei Shang Fu.
Speaker 8: To be lifted so they would be on equal footing.
Speaker 8: Now that has not happened. The Pentagon says it is
Speaker 8: very concerned because it feels there need to be open
Speaker 8: lines of communication. The meeting would have happened in Singapore.
Speaker 8: This week in San Francisco, I'm at Baxter Bloomberg Daybreak.
Speaker 2: All right, ed?
Speaker 5: Thanks?
Speaker 2: So a couple top CEOs in the US are in
Speaker 2: China this week. Jamie Diamond takes center stage tomorrow at
Speaker 2: the JP Morgan Chase China's Summit. We get the story
Speaker 2: from Bloomberg's Lisa Mateo.
Speaker 9: This will be the first major event held by a
Speaker 9: global bank in mainland China since the country exited its
Speaker 9: zero COVID policy. After three years of virtual events, more
Speaker 9: than twenty six hundred bankers and clients will gather for
Speaker 9: two days at a hotel in the finance hub of Shanghai.
Speaker 9: Diamond will be confronting a business landscape that looks vastly
Speaker 9: different from his visit four years ago. Back in twenty nineteen,
Speaker 9: the last time the flagship event was held in person,
Speaker 9: the US bank and Wall Street peers were gearing up
Speaker 9: to cash in on China's long awaited opening of its
Speaker 9: sixty trillion dollar financial sector this year. The conference is
Speaker 9: being held against the backdrop of a US China relationship
Speaker 9: that's at its worst in decades. Lisa Matteo, Bloomberg Daybreak.
Speaker 2: All right, Lisa, thanks, We're going to bring you an
Speaker 2: interview with JP Morgan Chase CEO Jamie Diamond tomorrow morning,
Speaker 2: right here on Bloomberg Daybreak at five am Wall Street Time.
Speaker 1: Well, Nathan Elon Musk is in China his private jet
Speaker 1: and landed in Beijing a few hours ago. This is
Speaker 1: the billionaire's first trip to the country in three years.
Speaker 1: Bloomberg News has learned Musk is expected to meet a
Speaker 1: senior Chinese officials and visit Tesla's Shanghai factory. Sources say
Speaker 1: he will potentially meet Premier Lee Chiong to discuss automated
Speaker 1: driving technology that Tesla is seeking to introduce in China.
Speaker 2: Turning to the Chinese economy, Karen two new surveys suggests
Speaker 2: the country's manufacturing sector improved or at least stabilized.
Speaker 5: In May.
Speaker 2: Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong, China.
Speaker 10: Beise book says it's a show manufacturing up notably from April.
Speaker 11: It said.
Speaker 10: Domestic and foreign orders also picked up separately. Goldman Sachs
Speaker 10: sided gains in the PMI for emerging industries. Now, one
Speaker 10: might surmise that data would spruce up sentiment a little
Speaker 10: after a rough recent period, but markets paid little heed still. China,
Speaker 10: beij Book said revenue and profit margins for Chinese manufacturers
Speaker 10: increased in May, and so did the service and retail sectors.
Speaker 10: The official PMI comes out tomorrow in Hong Kong. Brian
Speaker 10: Curtis Bloomberg day break.
Speaker 1: All right, Brian, thank you well. In Europe, Spanish inflation
Speaker 1: slowed by more than anticipated. May's reading moderated to two
Speaker 1: point nine percent. That's the least in almost two years,
Speaker 1: as fuel costs fell and the growth on food price
Speaker 1: is eased. The result follows April's uptick to three point
Speaker 1: eight percent.
Speaker 2: Here in the US, Karen, it's going to be a
Speaker 2: shortened trading week, but we get a slew of key
Speaker 2: economic reports, culminating with Friday's jobs report. The median forecast
Speaker 2: is for a gain of one hundred and ninety thousand
Speaker 2: non farm payroll Sarah House is senior economist at Wells Fargo.
Speaker 11: I think what we should expect is a continued moderation
Speaker 11: in job growth. So over the past three months pails
Speaker 11: of average to game it's two undred twenty two thousand,
Speaker 11: so I think we'll probably see some moderates fully there,
Speaker 11: maybe something around two hundred jobs.
Speaker 2: Wells Fargo senior economist Sarah Housays should be watching for
Speaker 2: other data this week to inform that forecast, including the
Speaker 2: ISM manufacturing survey and Jolt's job openings.
Speaker 1: Well Nathan wall Street. We'll also see a number of
Speaker 1: tech companies report quarterly earnings this week. We get a
Speaker 1: preview from Bloomberg's Terlie Pellett.
Speaker 7: Among those tech names Broadcom, Dell Technologies, Salesforce, VMware, and HP.
Speaker 7: It comes amid what many are calling better than feared
Speaker 7: quarterly earnings. Monamahajan is senior investment strategist at Edward Jones.
Speaker 12: Although earnings growth this past quarter did exceed expectations, we're
Speaker 12: still looking at negative earnings growth and really now three
Speaker 12: back to back negative earning supporters, so valuation is expanding.
Speaker 12: Breath has been narrow.
Speaker 7: Also this week, more insight has the strength of the
Speaker 7: consumer with reports from Lulu Lemon, Athletica and Dollar General
Speaker 7: in New York. Charlie Pellett Bloomberg Daybreak.
Speaker 2: All Right, Charlie, Thanks, in a new Bloomberg pole says
Speaker 2: this year's Big Tech Rally will continue. Forty one percent
Speaker 2: of nearly five hundred participants in Our Market's Live Pulse
Speaker 2: survey say the highest returns this year would come from
Speaker 2: buying quality stocks focused on profitability. That includes taking long
Speaker 2: physicians and companies like Apple and Microsoft, which have surged
Speaker 2: as markets embraced growth and shy away from economically sensitive industries.
Speaker 2: And for a look at some of the other stories
Speaker 2: making news in New York and around the world. Were
Speaker 2: joined by Bloomberg's Michael Barr, Good Morning, Michael.
Speaker 3: Good Morning, Nathan. Memorial Day parades took place across the
Speaker 3: country to hontor the memory of the people who have
Speaker 3: died for our country. In New York, Mayor Eric Adams
Speaker 3: attendant a wreathlaying ceremony at the Intrepid Museum. The Mayor
Speaker 3: also took part in ceremonies at the Soldiers and Sailor's
Speaker 3: Monument along Riverside Drive in Chappaqua, New York. Former President
Speaker 3: Bill Clinton and former Secretary of State Hillary Rodham Clinton
Speaker 3: marched in a parade in Matouche in New Jersey. A
Speaker 3: family is getting the remains of their loved one who
Speaker 3: died during World War II. Staff Sergeant Michael Uran was
Speaker 3: a twenty one year old gunner when his group of
Speaker 3: bombers came under heavy attack by Germany. His plane went
Speaker 3: down and he was buried in Germany. Urn's nephew, Michael
Speaker 3: Joseph Urhan.
Speaker 13: But the army contacted me and said, oh, would you
Speaker 13: like to have him buried in Arlington? And I said,
Speaker 13: you know, I really like to have him buried in
Speaker 13: Mttouche and his whole families here.
Speaker 3: Uran says his uncle's remains were found after a German
Speaker 3: family remembered where the American soldier had been buried after
Speaker 3: his plane crashed. It was a violent Memorial Day on
Speaker 3: a Hollywood floor to each nine people, including three children,
Speaker 3: were shot. All are said to be in stable condition. Hollywood,
Speaker 3: Florida Police Chief Chris O'Brien.
Speaker 14: It's unfortunate when we have law biting citizens come to
Speaker 14: our beach to enjoy the day that gets disrupted by
Speaker 14: a group of criminals who engage in this type of
Speaker 14: violent activity.
Speaker 3: Chief O'Brian says at least one person has been detained.
Speaker 3: In Chicago, forty four people were shot, nine fatally in
Speaker 3: Memorial Day weekend gun violence. Chicago Mayor Brandon Johnson, we
Speaker 3: have a.
Speaker 7: Lot of work to do in the city. Poverty didn't
Speaker 7: go away over the weekend.
Speaker 6: Like we understand that when the communities have been disinvested
Speaker 6: in and traumatize that you're seeing the manifestation of that.
Speaker 3: Trind Mayor Johnson and activists are calling on gun owners
Speaker 3: to keep locks on weapons to protect children. Drones damaged
Speaker 3: several residential buildings in Moscow early today as Russia pummeled
Speaker 3: Ukraine's capital with a new wave of air strikes. The
Speaker 3: drone attack was the biggest on the Russian capital since
Speaker 3: President Vladimir Putin ordered last year's invasion of Ukraine. Global
Speaker 3: News twenty four hours a day, powered by more than
Speaker 3: twenty seven hundred journalists and analysts in over one hundred
Speaker 3: and twenty countries. Michael Lebarr, this is Bloomberg, Nathan.
Speaker 2: Thanks Michael, time out for our Bloomberg Sports update, and
Speaker 2: for that we bring in John Sasha.
Speaker 3: Thanks Nathan.
Speaker 4: The Celtics just did something only three teams had ever
Speaker 4: done in NBA history, win three times, went down three
Speaker 4: to nothing in the series, but still no team has
Speaker 4: come all the way back to Miami. Heat prevented that
Speaker 4: from happening by holding the Celtics to thirty nine percent shooting,
Speaker 4: winning Game seven going away in Boston one O three
Speaker 4: to eighty four. Jimmy Butler scored twenty eight points.
Speaker 15: Just confident. I know the work that we all put
Speaker 15: into it, so I know what we're capable of. But
Speaker 15: nobody satisfied we haven't done anything. We don't play just
Speaker 15: to win. The Eastern Conference who played to win the
Speaker 15: whole time?
Speaker 4: The Heat avenge a Game seven lost to Boston and
Speaker 4: last year's East Final that was the series where the
Speaker 4: road team went five and two. Same thing happened in
Speaker 4: this series. The NBA Finals again Thursday, Miami at Denver.
Speaker 4: Stanley Cup Final begin on Saturday, Florida at Vegas. Golden Knights,
Speaker 4: who liked the Heat, were up three to nothing, saw
Speaker 4: that lead cut to three to two, but Vegas won
Speaker 4: Game six in Dallas six to nothing. Yankees in Seattle,
Speaker 4: big night for Aaron Judge two run homer off the
Speaker 4: foul pole and a double, then another home run. He's
Speaker 4: up to seventeen and judge captain by going over the
Speaker 4: wall to take a home run.
Speaker 3: Away.
Speaker 4: Yanks, with eighteen hits, beat the Mariners ten to four.
Speaker 4: The win did Domingo Hermann, who returned from his suspension
Speaker 4: Mets for off the host to Phillies. Tonight, the X
Speaker 4: met Marcus Strowman for the complete game, one hit shutout
Speaker 4: for the Cubs, a one nothing win over Tampa Bay.
Speaker 4: Notre Dame won the NCAA and Lacrosse title for the
Speaker 4: first time, beat Duke of the Final, Novak Djokovics first
Speaker 4: round win at the French Open. The second seed, daneil
Speaker 4: Medvedet plays this morning in Paris, so does the women's tough.
Speaker 8: Seed IGAs Schwietek John Stashew.
Speaker 4: We're in Bloomberg Sports.
Speaker 16: From coast to coast, from New York to San Francisco,
Speaker 16: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg
Speaker 16: Business Appen bloom dot Com. This is Bloomberg Daybreak. Good morning,
Speaker 16: I'm Nathan Hager.
Speaker 2: With six days to go till a potential default, both
Speaker 2: President Biden and House Speaker Kevin McCarthy are trying to
Speaker 2: sell their deal to raise the debt ceiling to lawmakers
Speaker 2: on both sides of the isle, land to the public
Speaker 2: President's brushing aside criticism that he hasn't been fully engaged
Speaker 2: in the negotiations.
Speaker 6: One of the things that I share some of these
Speaker 6: guys saying is why didn't Biden say what a big
Speaker 6: dealer is? Why would Biden to sad what a good
Speaker 6: dealer before the vote is? Think that's going to help
Speaker 6: me get a path?
Speaker 2: Oh that was the President before he left Washington yesterday
Speaker 2: for Delaware. We're expecting him to be back in Washington,
Speaker 2: DC later today. Joining us now from the nation's capital.
Speaker 2: Greg Valiere, chief US policy strategist at AGF Investments. Greg,
Speaker 2: I want to talk to you about the politics surrounding
Speaker 2: this long negotiation. But before that, how do you see
Speaker 2: the whip count right now? From what we understand, both
Speaker 2: the President and the Speaker have been working the phones
Speaker 2: through the long holiday weekend. Do you think they've got
Speaker 2: enough support to get this deal passed next week?
Speaker 17: I think so, Nathan, good morning. First of all, the
Speaker 17: great irony here is that Kevin McCarthy is going to
Speaker 17: have to get about one hundred Democrats in the House
Speaker 17: to go along with him, because there are so many
Speaker 17: defections among conservative Republicans in the House. But I think
Speaker 17: you'll get that and then we move. Well, today, we
Speaker 17: have a big fight in the Rules Committee that has
Speaker 17: to get done. But the final big fight comes early
Speaker 17: next week in the Senate, where Lindsey Graham and other
Speaker 17: Hawks are saying this is not sufficient for defense spending.
Speaker 17: So there are still some possible potholes in the next
Speaker 17: few days.
Speaker 2: All right, well, let's go through some of those potholes
Speaker 2: one by one. You mentioned the House Rules Committee. That
Speaker 2: hurdle comes up later on this afternoon. We're already hearing
Speaker 2: from some members, some conservative members in that committee, saying
Speaker 2: that they might put some roadblocks up for this. Could
Speaker 2: we see a potential issue even in the Rules Committee
Speaker 2: later today, it's.
Speaker 17: Not out of the question. You may recall Kevin McCarthy
Speaker 17: made lots of promises a few months ago to become Speaker,
Speaker 17: and one of them was to put three very conservative
Speaker 17: Republicans on the Rules Committee. All three will vote against
Speaker 17: this bill, but there's another Republican who's probably going to
Speaker 17: vote for it, and if necessary, maybe even Democrats would
Speaker 17: vote for it, So it's a close call, but I
Speaker 17: think it makes it through the Rules.
Speaker 2: Committee, and then it gets to the full House, where
Speaker 2: I would imagine that some of those same dynamics are
Speaker 2: in play.
Speaker 17: Yeah, exactly, and I think McCarthy will have enough votes
Speaker 17: from Democrats, So I do think it makes it through
Speaker 17: the House.
Speaker 2: And when it comes to the House to have a
Speaker 2: lot of Democrats coming out in support of this, does
Speaker 2: that potentially put his speakership at risk?
Speaker 17: It could. That could be a story later this summer.
Speaker 17: It's not a story for it this week. I think
Speaker 17: they're fairly pleased with the work he's done, but it
Speaker 17: only takes a handful of votes to perhaps oust him.
Speaker 17: What he's got going for him, Nathan, is that there's
Speaker 17: no logical successor.
Speaker 2: Moving on to the Senate. You mentioned some potential hurdles there,
Speaker 2: with particularly defense hawks on the Republican side coming out
Speaker 2: against this. We've also heard as well from Utah Senator
Speaker 2: Mike Lee a few days ago tweeted that he'd put
Speaker 2: up every procedural hurdle at his disposal to delay this bill.
Speaker 2: Could that raise a risk that we get potentially to
Speaker 2: June fifth and maybe don't have this thing passed in time.
Speaker 17: That is a risk. I think that the Treasury Department
Speaker 17: probably would do something extraordinary. Maybe they'd sell assets in
Speaker 17: the Highway Trust Fund or the Social Security Trust Fund
Speaker 17: and they put the money back in later in the spring.
Speaker 17: But I do think that there is a chance that
Speaker 17: Lindsey Graham and others could drag this out to a
Speaker 17: point where default rem mains as a real concern.
Speaker 2: And one other potential concern is a lot of the
Speaker 2: for lack of a better word, pork that could be
Speaker 2: included in this bill as well, if you want to
Speaker 2: interpret it that way. We know that Senator Manchin in
Speaker 2: particular got a provision where he's going to have a
Speaker 2: pipeline that he's been pushing for included in this bill
Speaker 2: as well. What about some of the provisions that are
Speaker 2: included in this bill. It's obviously not a clean debt
Speaker 2: ceiling bill that President Biden wanted.
Speaker 17: No, it's not. And a lot of these provisions I
Speaker 17: think have been watered down the Republicans on issue after issue,
Speaker 17: cut way back on what they wanted. And I think
Speaker 17: because of that, I don't see this as a real
Speaker 17: headwind for the economy. I'd prefer to call it a
Speaker 17: light breeze for the economy. It's not going to be
Speaker 17: that damaging. Because you're one trillion in cuts over ten years.
Speaker 17: Well you divide that by tim That's not a lot
Speaker 17: of money by Washington standards.
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 2: stories making news from Wall Street to Washington and beyond.
Speaker 1: Look for us on your podcast feed at six am
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 1: get your podcasts.
Speaker 2: You can also listen live each morning starting at five
Speaker 2: am Wall Street time, on Bloomberg eleven three to zero
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,
Speaker 2: Bloomberg one oh six to one in Boston, and Bloomberg
Speaker 2: nine sixty in San Francisco.
Speaker 1: Our flagship New York station is also available on your
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.
Speaker 2: Listen coast to coast on the Bloomberg Business app, serious
Speaker 2: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg
Speaker 2: dot Com.
Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Join us again
Speaker 1: tomorrow morning for all the news you need to start
Speaker 1: your day, right here on Bloomberg Daybreak